! Required information CC2-1 (Static) Accounting for the Establishment of a Business [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30. a. Received $80,000 cash when issuing 8,000 new common shares. b. Purchased land by paying $2,000 cash and signing a note payable for $7,000 due in three years. c. Hired a new aesthetician for a salary of $1,000 a month, starting next month. d. NGS purchased a company car for $18,000 cash (list price of $21,000) to assist in running errands for the business. e. Bought and received $1,000 in supplies for the spa on credit. f. Paid $350 of the amount owed in (e). g. Nicole sold 100 of her own personal shares to Raea Gooding for $300 CC2-1 (Static) Part 4 4. Calculate the current ratio at April 30. Numerator Denominator Current Ratio H
! Required information CC2-1 (Static) Accounting for the Establishment of a Business [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30. a. Received $80,000 cash when issuing 8,000 new common shares. b. Purchased land by paying $2,000 cash and signing a note payable for $7,000 due in three years. c. Hired a new aesthetician for a salary of $1,000 a month, starting next month. d. NGS purchased a company car for $18,000 cash (list price of $21,000) to assist in running errands for the business. e. Bought and received $1,000 in supplies for the spa on credit. f. Paid $350 of the amount owed in (e). g. Nicole sold 100 of her own personal shares to Raea Gooding for $300 CC2-1 (Static) Part 4 4. Calculate the current ratio at April 30. Numerator Denominator Current Ratio H
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter1: The Demand For And Supply Of Financial Accounting Information
Section: Chapter Questions
Problem 8C
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Required information
CC2-1 (Static) Accounting for the Establishment of a Business [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting
a new business. Here are some transactions that have occurred prior to April 30.
a. Received $80,000 cash when issuing 8,000 new common shares.
b. Purchased land by paying $2,000 cash and signing a note payable for $7,000 due in three years.
c. Hired a new aesthetician for a salary of $1,000 a month, starting next month.
d. NGS purchased a company car for $18,000 cash (list price of $21,000) to assist in running errands for the business.
e. Bought and received $1,000 in supplies for the spa on credit.
f. Paid $350 of the amount owed in (e).
g. Nicole sold 100 of her own personal shares to Raea Gooding for $300
CC2-1 (Static) Part 4
4. Calculate the current ratio at April 30.
Numerator
Denominator
Current Ratio
H](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd4ce18a-9363-4f20-9a16-058b1dfa9366%2F147a5226-0415-4958-abbc-0919699f3d93%2F1p642t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
CC2-1 (Static) Accounting for the Establishment of a Business [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting
a new business. Here are some transactions that have occurred prior to April 30.
a. Received $80,000 cash when issuing 8,000 new common shares.
b. Purchased land by paying $2,000 cash and signing a note payable for $7,000 due in three years.
c. Hired a new aesthetician for a salary of $1,000 a month, starting next month.
d. NGS purchased a company car for $18,000 cash (list price of $21,000) to assist in running errands for the business.
e. Bought and received $1,000 in supplies for the spa on credit.
f. Paid $350 of the amount owed in (e).
g. Nicole sold 100 of her own personal shares to Raea Gooding for $300
CC2-1 (Static) Part 4
4. Calculate the current ratio at April 30.
Numerator
Denominator
Current Ratio
H
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